Over the last few years, more and more families and individuals have been facing serious financial hardships, which have often stood in the way of their efforts to pay off debt and save money at the same time. Yet, there are ways you can regain your financial independence and still manage to save up some money for an emergency, or a particular goal.
The key to being able to pay off debt and save money stands in embracing a more financially responsible lifestyle. The first step is to understand your real budget and expenses, including the regular payments you need to make. That essentially means that you can only spend each month the difference between what you earn and what you need to pay. No excuses!
Once you’ve come to accept that you only have a certain amount to play with every month, you can start looking for ways to save money. And that is when you need to change your habits that cost you thousands of dollars every year. So what should you do?
- Forget about shopping for clothes and other indulgences that you don’t really need. You can make do with the clothing you already own. This can save you a lot of money over the course of a year.
- Prepare your own lunch at home and don’t be tempted by eating out or ordering lunch at the office. Instead of $10 lunches, save that money by making your own. This alone can save you up to $200 a month, or roughly $2400 per year.
- Going out for entertainment can be fun, but it often means unnecessary costs. When you are struggling to pay off debt, you need to make your life easier and reduce your costs wherever possible. Therefore, you must consider giving up such expensive habits of dining out or going out with your friends. You can invite your friends over and enjoy the time you spend together in your own home without having to spend hundreds of dollars.
- Do you really need all your magazine and newspaper subscriptions? Do you really need two phones? Do you ever have the time to enjoy all your TV programs? If the answers to these questions are “no, not really” then you know what you have to do. These things that you don’t really need add up to your monthly costs and often prevent you from taking the right steps to pay off debt.
- It’s incredible how much food people throw away because they are not properly planning their menu and budgeting their grocery bill. It only takes a little organizing and you can easily cut off thousands of dollars every year from your groceries alone. Plan carefully and you’ll avoid throwing out food just because it’s gone bad.
These are just some simple ways to help you pay off debt and save money at the same time. When you are able to save money by reducing unnecessary costs, it becomes much easier to pay all of your bills and pay down your debt faster. Talk to one of our credit counselling specialists who can help you develop a budget that allows you to manage your debt and save money at the same time.